'Sell shares owned by Vijay Mallya' .... thereby collecting Rs 5,825 crore ...!

State Bank of India-led Federation of Banks has sold shares owned by businessman Vijay Mallya. 5,825 crore has been collected through this.

The Enforcement Department has handed over assets worth Rs 9,371 crore belonging to Vijay Mallya, Neerav Modi and Mehul Choksi to the concerned banks.

Vijay Mallya, a businessman from Bangalore, has borrowed billions from various banks and has not repaid it. He said that he had given Rs. 900 crore and Rs 9,990 crore to SBI-led consortium of 17 banks. Vijay Mallya fled abroad without repaying the loan. The CBI and the enforcement agencies separately registered and investigated cases against him.

Vijay Mallya has taken loans from banks at his own risk. United Breweries had repurchased shares in Kingfisher for a loan. It was revealed that loans were obtained to operate the King Fisher Company, which were later used for other purposes. It was found that the money was used to buy property and a luxury plane for personal use.

Similarly, Gujarati businessmen Neerav Modi and Mehul Choksi have fled abroad without repaying bank loans. Cases were also registered against them.

The loss to the banks by these three was Rs 22,585.83 crore. Enforcement has confiscated assets worth Rs 18,170 crore belonging to them. Shares and assets worth Rs 12,500 crore belonging to Vijay Mallya have been seized. Of the assets seized by the Enforcement Department, assets worth Rs 969 crore are held abroad.

All three have been found to have amassed assets through various scams both domestically and abroad. The first information report (FIR) registered by the CBI and the Enforcement Department states that he was also found involved in foreign exchange fraud through loans obtained from banks by setting up companies under fake names.

All of this has been proven by ample evidence that it was bought and enjoyed in the name of counterfeiters, trusts, and third parties.

Vijay Mallya has been deported to India by the London High Court. Accordingly, the Central Government has taken serious action to extradite him to India. Neerav Modi has also been arrested by London police and is lodged in jail there.

Meanwhile, the court had ordered the banks to hand over the shares of Vijay Mallya, which was seized by the enforcement department, to the federation. Accordingly, all those shares were handed over to the Federation of Banks. The shares are currently valued at Rs 5,825 crore.

Earlier, the banking consortium had sold Rs 1,367 crore worth of shares owned by United Breweries and United Spirits Limited.

Vijay Mallya owned United Breweries (UP) shares under various aliases. These were sold by the Federation of Banks to Henigen.

In addition, the sale of shares worth Rs 800 crore is expected to close by the 25th of this month, bank sources said. Thus 70% of the loan amount has been recovered.

Of the assets seized by the Enforcement Department from Vijay Mallya, Neerav Modi and Mehul Choksi, assets worth Rs 9,371 crore have so far been handed over to the banks that lent them money.

Earlier, the Foreign Exchange Law Court (PMLA) had allowed banks to sell assets owned by Vijay Mallya. Accordingly, the court noted in the permit that some real estate assets and securities could be sold to raise funds and sell assets held in banks in lieu of debt.